WGM, the debtors attorneys sued the FDIC for a "5th amendment" taking and over $6.8 billion in creditor claims against the WMB receivership. The outcome of the litigation was curious in that, seemingly, the Debtors estate settled for a pittance, in comparison to their initial claims.
The actions were all dismissed, "with prejudice", in deference to the GSA/POR. All one has to do is ask WHY??? Why would the Debtors rescind their substantial claims against the FDIC and accept the terms of the mediated result, if it was not to the benefit of the estate?
It is clear that during the negotiations, as is with most negotiations, the DC Action, was used as leverage against the FDIC, to gain a more equitable outcome. IMO, the assets that were "protected" from seizure and sale, in addition to wholly owned WMI assets also seized were the focus of these negotiations.
An acknowledgement by the FDIC, IMO, was granted that these assets would be returned to the estate at some point. It makes absolutely no sense why the Debtors counsel would so abruptly accept the dismissal of their extensive claims for a POR that would essentially only supply the "Newco" as compensation.
The status of the "Newco", was never in dispute, therefore it cannot be regarded as a form of valid compensation. The only conclusion that would "mesh" with the events that occurred would be that additional assets of the estate were part of the "bargain" reached between the parties.
This, is the revelation that "MOST" here eagerly await, with the exception of a few pseudo MB "EXPERTS".
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